For Each Item Listed In, Place the Letter (A Through

Multiple Choice

For each item listed in, place the letter (a through e) of the accounting effect in the space provided.You may use each letter more than once or not at all.
-A company applies lower-of-cost-or-market for valuing ending inventory when market price is less than cost.

A) Assets and net income increase
B) Assets and net income decrease
C) Assets decrease and net income increases
D) Assets increase and net income decreases
E) Assets and net income are not affected